Core Viewpoint - Sandisk Corporation (SNDK) has seen a significant stock increase of +70% to over $400 per share in just 11 trading days, positioning it as a leading tech stock for 2026 due to a scarcity in the NAND memory chip market [1][4]. Company Overview - Sandisk is a major producer of NAND flash memory, benefiting from the increasing demand for high-performance flash storage driven by AI infrastructure [2]. - The company was spun off from Western Digital (WDC) to focus on flash memory, which has distinct market and growth profiles compared to hard-disk drives [3]. Market Dynamics - The demand for NAND has surged due to the AI and data-center boom, with solid-state drives (SSDs) being essential for data processing in AI applications [6]. - The broader industry is experiencing a scarcity of NAND, which has significantly boosted Sandisk's stock performance, with a +700% increase since its public listing in February 2025 [4]. Financial Performance - Sandisk's sales are projected to increase by 42% in fiscal 2026 to $10.45 billion, up from $7.36 billion in the previous year, with further growth of 26% expected in FY27 to $13.15 billion [8]. - Annual earnings per share (EPS) are anticipated to rise by 350% to $13.46 in FY26, with a further increase of 93% to $25.94 in FY27 [8]. Valuation Metrics - Despite the stock's remarkable rally, Sandisk is trading at a forward earnings multiple of 30X, which is comparable to the S&P 500 and in line with Western Digital and the industry average [10][11]. Investment Outlook - Sandisk is positioned as a strong buy based on rising EPS revisions, indicating potential for further upside in the context of accelerating NAND demand [13].
Sandisk (SNDK) Has Become the Hottest Tech Stock to Pursue in 2026